AQA Geography
Unit 3
The Human Options
David Redfern
June 2009
1
Programme
10.00am
10.15am
Registration and coffee
The A2 specification in brief
 The A2 course in summary
 General issues regarding delivery
 General issues regarding fieldwork
10.35am
Unit 3 – The Human Option:
World Cities
 Content/guidance/discussion
11.15am
11.30am
Morning coffee
Unit 3 – The Human Option:
Development and globalisation
 Content/guidance/discussion
12.15pm
Unit 3 – The Human Option:
Contemporary conflicts and challenges
 Content/guidance/discussion
1.00pm
1.50pm
Lunch
Unit 3 – Assessment types
 Structured questions
 Essay questions
 Mark schemes
2.30pm
Unit 3 – Assessment of student answers
 A workshop activity of marking student answers to both types of
questions
 Discussion of the outcomes of the assessment activity
4.00pm
Day ends
2
Building on ‘Slumdog Millionaire’
Mumbai – the city
Mumbai is India's largest city, and is the financial capital of the country. It serves as an
important economic hub of India, contributing 10% of all factory employment and 40%
of India's foreign trade. Many of India's numerous conglomerates (including the State
Bank of India, Tata Group, Godrej and Reliance) are based in Mumbai. Many foreign
banks and financial institutions also have branches in this area with the World Trade
Centre (Mumbai) being prominent. Until the 1980s, Mumbai owed its prosperity largely
to textile mills and the seaport, but the local economy has since been diversified and now
Mumbai is home to most of India's specialised technical industries, having a modern
industrial infrastructure and vast, skilled human resources (pop. 14 million). Industries
include aerospace, optical engineering, medical research, computers and electronic
equipment of all varieties, shipbuilding and salvaging, and renewable energy.
State and central government employees make up a large percentage of the city's
workforce. Mumbai also has a large unskilled and semi-skilled self employed population,
who primarily earn their livelihood as street sellers, taxi drivers, mechanics and other
such occupations. The port and shipping industry employs many residents, directly or
indirectly. In Dharavi in central Mumbai, there is an increasingly large recycling
industry, processing recyclable waste from other parts of the city; the district has an
estimated 15,000 single-room factories. The media industry is another major employer in
Mumbai. Most of India's major television and satellite networks, as well as its major
publishing houses, have headquarters here. The centre of the Hindi movie industry,
Bollywood, produces the largest number of films per year in the world. In direct contrast,
begging is rife.
Along with the rest of India, Mumbai has witnessed an economic boom since the 1990s:
the finance boom in the mid-nineties and the IT, export, services and outsourcing boom
in the 21st century. Upward mobility among Mumbaikars has led to a direct increase in
consumer spending. In April 2008, Mumbai was ranked seventh in the list of "Top Ten
cities for billionaires" by Forbes magazine.
Slumdog Millionaire
Contrast the above with the publicity for the movie ‘Slumdog Millionaire’ which started
to appear in late 2008 culminating with the film winning eight Oscars in February 2009.
In particular the amount of information and opinion about Dharavi, the location for much
of the movie, started to increase rapidly, until it became a flood. However, in this flood it
is very easy to lose sight of the real Dharavi. Many of you will have formed your own
opinion from the film. What is the place really like and what of its future? Can the success
of the movie be built upon?
3
Dharavi
Asia's largest slum, Dharavi, lies on prime property (174 ha) right in the middle of India's
financial capital. It is home to more than a million people. Many are second-generation
residents, whose parents moved in years ago.
Today’s Dharavi bears no resemblance to the fishing village it once was. A city within a
city, it is one unending stretch of narrow dirty lanes, open sewers and cramped huts. In a
city where house rents are among the highest in the world, Dharavi provides a cheap and
affordable option to those who move to Mumbai to earn their living. Rents here can be as
low as 185 rupees (£2.20) per month. As Dharavi is located between Mumbai's two main
suburban rail lines, most people find it convenient for work.
Entering the Dharavi slum takes a bit of nerve. This warren of narrow alleys teams with
life. The senses are assaulted with sights and smells that disorientate the westerner’s
sensitivities. One is quickly disoriented and it would be very easy to get lost. Everywhere
people are working. It is a hive of activity with a large number of thriving small-scale
industries that produce embroidered garments, export quality leather goods, pottery and
plastic. Most of these products are made in tiny manufacturing units spread across the
slum and are sold in domestic as well as international markets.
Even in the smallest of houses, there is usually a cooking gas stove and continuous
electricity. Many residents have a small colour television with a cable connection that
ensures they can catch up with their favourite Indian ‘soaps’.
Attitudes to ‘Slumdog’
Many residents of Dharavi are hopeful that the Oscars glory will encourage slum children
to move forward in life. ‘It would definitely take our country to new heights. After this
movie, we know that children from India can do a lot.’ said one resident. Another said
‘The movie has done a good business. Slum children have also worked in the movie so it
would be good for them.’
The film has received mixed response across India as some slum dwellers found it
offensive since it depicts the lives of impoverished Indians. Its director, Danny Boyle, has
faced accusations from some parts of the Indian media that his film was ‘poverty porn’.
Bollywood actor Sushmita Sen disagrees with the controversy and says that the movie
shows reality, which everybody wants to see. ‘People like to look at reality. And who
knows, by films like this people will also come forward to want to know India. Because
when I see Slumdog, I say Mercedes as well as a bullock cart can run on the streets of my
country.’
4
The future?
Mumbai is India's biggest city and, for many, its greatest hope. But in the way of its rapid
progress stands Asia's largest slum. The Maharashtra state government has a vision for
Dharavi - to turn the eyesore into a clean green corner of Mumbai. The architect
employed to put together a $2 billion bid from major developers across the world to
demolish Dharavi and build homes and amenities, Mukesh Mehta, has said ‘Dharavi is a
black hole – something we should be ashamed of. My vision would be that it would be
transformed into one of the better suburbs of Mumbai.’
But many residents have other ideas. They refuse to be transformed by international
companies who have little or no idea of their community and what it needs. Their
neighbourhood may be plagued by a crippling infrastructure but at the heart of Dharavi is
a bustling business district that generates up to $39m a year. Many are suspicious that the
motivation to demolish Dharavi is purely about money. The slum is a prime location that
makes the land it sits on worth its weight in gold. Arputham Jockin grew up in Mumbai's
slums and now represents the slum dwellers in their fight against the government's plans.
‘Selling this land to the global market and giving it over for commercial use - how will
that improve our lives? 90% of the people here want a stake in their future and a say in
how it is transformed. It has to work from the bottom up - not top down.’ he says.
The state government will invite international companies to bid for the contract to
transform Dharavi. But the planners and the government face a fierce battle. Close to
where the slum sits is the main railway track bringing trains from across India to its
wealthiest city - and the slum dwellers threaten to bring it to a grinding halt. Arputham
says if the plans are given the go-ahead: ‘all we have to do is simply step out of our
homes’, he explains, ‘We will completely block the railways. A hundred thousand of us
will squat there and bring the whole city and the whole of India to a stop.’
5
1. Describe the range of industrial activities found within Mumbai.
2. Identify 4 pieces of evidence that indicate great disparities of wealth exist within
the city
3. Why would you become ‘quickly disorientated’ within Dharavi?
4. Why does the Maharashtra state government want to remove Dharavi?
5. Describe the site and situation of Mumbai.
6. Suggest reasons for the growth of areas like Dharavi in many cities around the
world.




Answer plan:
The reasons include both migration and natural population growth
Migration is due to ‘push’ and ‘pull’ factors: each of these should be developed
Natural population growth refers to the relationship between birth and death rates
To access the higher levels of marks, students must refer to factors that relate to
specific areas that are named – good case study material; and to more
sophisticated reasoning for both migration and natural growth. For example, why
do people migrate from rural areas – what social and economic conditions there
cause them to seek better lives – rather than why they are attracted to cities.
7. Why has industrial growth in Mumbai been so rapid in the last 20 years?
8. What issues does the rapid growth of Mumbai cause for the nation as a whole?
9. With reference to examples, describe and comment on the ways in which cities in
developing nations have attempted to solve problems of wealth disparity within
cities.
10. ‘Sustainability is an impossible aim in a city like Mumbai’. To what extent do
you agree with this statement?
11. ‘Because when I see Slumdog, I say Mercedes as well as a bullock cart can run on
the streets of my country.’ Is this a good thing to achieve?
6
7
Is it trade or aid that closes the gap?
The relative merits of trade and/or aid’s contributions to closing the Development Gap
have been debated ever since Brandt in 1980. In the current global economic climate the
role of both is under pressure but as geographers we need to stand back and debate the
issue.
Trade
Trade is the basis for wealth creation and therefore, economic and social development. It
introduces competition in domestic markets. Greater trade volumes are associated with
higher growth and quality of life of people, and poverty reduction. However, trade
continues to be skewed towards the Developed World. Nevertheless, the strongest growth
in trade is being felt among the BRICs (Brazil, Russia, India, and China), middle income
countries such as Poland and a few low income countries such as Vietnam. The poorest
48 economies have seen their trade remain static. About 75% of world trade takes place
in manufactured goods and services between developed economies. Trade from SubSaharan Africa is a mere 1.3% of world trade and comprises predominantly primary
products. Figures 2 and 3 show trade flows for Europe and Africa to emphasise this point.
Yet the Monterrey Conference on Financing for Development 2002 stressed “Trade not
Aid”. The Millennium Development Goals, Goal 8 and Targets 12-18 all focus on trade.
Why is trade not aiding development across Africa?
The obstacles to greater trade are: (i) tariffs, especially when goods are moved to/from
landlocked states, (ii) poor human infrastructure such as delays at borders, which reduce
export value by 4%, and (iii) physical infrastructure that has not been subject to adequate
investment so much so that time-sensitive goods such as farm products can lose 6% of
their value per day due to slow transport, and (iv) transport costs that for landlocked
African states are 55% higher than for the coastal countries. The consequences for
landlocked states are that their costs are high (freight costs of imports are 25% of value in
Mali) and GDP per capita is lower (GDP of landlocked African states is US$ 680
whereas for the coastal transit countries it is US$1768). The Enabling Trade Index 2008
produced by the World Economic Forum is based on market access, border
administration, transport and communication costs and the business environment for 118
countries (Table 1). No African state excluding South Africa (58) and Morocco (74)
appear until 77th (Namibia). Twelve of the least enabling 20 states are African; Chad has
an index of 2.6 and Burundi 2.7 – both are landlocked.
Types of Aid

Food Aid and Disaster Aid are immediate responses to need. 12% of bilateral aid
comes in this form. Sometimes food aid is longer term. Aid to Eldoret in Kenya
8
following the post-election riots in 2008 took the form of food aid. NGOs are
prominent here.

Bilateral Aid flows between countries to finance projects normally of interest to
the donors because it will depend on the expertise that they supply. Therefore
much of the money returns to the donor country. About three quarters of aid is in
this form.

Multilateral Aid is aid from a variety of sources that is normally managed by
global agencies such as the World Bank.

Program Aid supports key specified imports such as many of the large dam
schemes. The World Bank’s Poverty Reduction Support Credit is such a
scheme supporting antiretroviral drug provision in Mozambique.

Tied Aid ties the recipient to the donor country especially when the donor wishes
to gain specific advantage such as Chinese aid in Sudan and Zambia.

Untied Aid leaves the recipient with the choice

Debt relief is a form of aid because it cancels the outstanding interest payments.
It is used to reduce the debt burden of countries that, while repaying loans, are
seeing the outstanding sums grow despite repayments. This increased fourfold
from 7% of Official Development Aid (ODA) in 2001 to 30% in 2005. Between
1992 and 2001 total provision for debt relief only exceeded 7% of ODA in one
year, 1998, when it was 9%. In absolute terms, approximately 60% of the increase
in ODA between 2004 and 2005 was for debt relief. Monterrey 2002 encouraged
donor countries to ensure that resources provided for debt relief do not detract
from ODA resources intended to be available for development. $2billion of debt
relief was actually used for Disaster Aid in Indonesia and Pakistan in 2005.

Private contributions and philanthropy such as the Bill and Melinda Gates
Foundation set up by the founder of Microsoft. Celebrity Philanthropy is being
led by people such as Bob Geldoff and Bono and copied in China, India and
Malaysia. Included here should be Religious Philanthropy.
Remittances are the sums sent back to home countries by those who have migrated
overseas both legally and illegally, to work e.g. money from Dubai to Pakistan or USA to
Mexico
Aid donors ranked by the percentage of Gross National Income (GNI) they give as aid
are shown on Table 1. Roodman’s Quality of Aid Index provides another perspective that
includes subjective factors; the quality of the recipient governance as well as poverty, the
9
penalising of Tied Aid, making provision for reverse flows servicing debt, small projects
and project proliferation, and rewarding tax policies to encourage private charitable
giving. Only the USA, Austria, Finland and Sweden supported the latter in 2004.
Table 1 Official Development Aid (ODA), Aid Quality, Private Giving and Enabling
Trade Indices
Country ranked
by % GNI 2008
$US
(millions)
ODA 2008
% of GNI
(UN Target
0.7%)
Sweden
4,508
0.98
Luxembourg
382
0.92
Norway
3,638
0.88
Denmark
2,570
0.82
Netherlands
6,522
0.8
reland
1,192
0.58
Belgium
2,214
0.47
Finland
981
0.43
Spain
6,138
0.43
UK
12,217
0.43
Austria
1,555
0.42
Switzerland
1,794
0.41
France
10,168
0.39
Germany
12,994
0.38
Australia
3,038
0.34
Canada
4,577
0.32
New Zealand
355
0.3
Portugal
471
0.27
Italy
4,059
0.2
Japan
7,679
0.18
USA
25,439
0.18
Source: OECD Development Statistics Online
% of
GNI
trend
2005-8
+0.04
+0.13
-0.06
+0.01
-0.02
+0.16
-0.06
-0.03
+0.16
-0.04
-0.10
-0.03
-0.08
+0.02
+0.09
-0.02
+0.03
+0.06
+0.03
-0.10
-0.05
Roodman’s
Quality of
Aid Index
2004
0.5
ND
0.4
0.48
0.45
0.12
0.21
0.19
0.07
0.19
0.15
0.21
0.23
0.15
0.11
0.14
0.03
0.1
0.11
0.09
0.07
Centre for
Global
Prosperity,
Private
Giving
Index
2007 $US
billions
0.10
0.02
0.25
0.09
0.95
0.32
0.34
0.06
0.36
4.12
0.12
0.50
1.03
1.27
0.66
1.36
0.09
0.03
0.06
0.45
36.9
Enabling
Trade
Index
2008
(Rank)
5.71 (3)
5.5 (12)
5.65 (4)
5.62 (6)
5.51 (11)
5.2 (20)
5.21 (18)
5.61 (7)
5.03 (22)
5.3 (16)
5.42 (15)
5.58 (9)
5.2 (19)
5.58 (8)
5.22 (17)
5.62 (5)
5.52 (10)
4.48 (26)
4.7 (33)
5.43 (13)
5.42 (14)
10
Failing commitments
At the 2005 Gleneagles G8 meeting it was agreed to increase ODA to 0.7% of GNI yet,
in 2006 and 2007, it receded by 15%. This happened after every major international
conference. The percentage of the GNP of developed countries allocated to ODA fell in
1993 after the Rio Summit in 1992, and between 1995 and 1997 after summits in 1994,
1995 and 1996; and again after the Millennium Summit in 2000. The developed countries
commit solemnly to increase ODA and proceed immediately to reduce it. The G77 and
China who represent the LEDCs, indicated that aid effectiveness depends on factors such
as the degree of national and local ownership, the quality of domestic policies and the
degree to which ODA responds to the objectives of domestic policies. The Monterrey
Conference recognized that aid effectiveness was being compromised by burdensome
donor imposed conditions such as the tying of aid, and by lack of harmony in the
conditions and operational procedures of donors, including multilateral institutions.
Aid for Trade
Ever since Bruntland emphasis has been placed on aid being sustainable and linked to
developing trade. Aid for FairTrade schemes has helped a little. However, there is a
danger that aid for trade will be used to off-set loss from deteriorating in terms of trade.
Two suggestions to alleviate some of the issues are the Tobin Tax (a suggested tax on all
trade of currency across borders) on international flows of money and debt cancellation
proposed by Jubilee 2000.
Neither trade nor aid has solved the problems of less economically developed countries.
Global politics are the major obstacle that has to be overcome to make both trade and aid
more successful.
11
Figure 2 Trade flows for Europe 2004
Figure 3 Trade Flows for Africa 2004
12
1. What are the key differences between the maps of trade patterns of Africa and
Europe in 2004? How might these patterns have changed by 2009?
2. Why are landlocked states in Africa at a disadvantage?.
3. Can you recall the Millennium development Goals?
4. What are NGOs?
5. What are NICs, RICs and LEDCs?
6. Study Table 1. Analyse and offer explanation for the patterns of ODA, Quality of
aid and Private Giving.
Answer notes
• The key point is that the indices place countries in different positions because
they are measuring using different criteria.
• There are countries whose aid policies do place them high on many indices;
Scandinavian countries stand out.
• The size of the US economy enables it to have both the highest ODA and Private
Giving. France, Germany and the UK are major private donor countries.
• Size of the country’s population can distort its position when figures are per
capita e.g. Luxembourg & USA at both ends of spectrum.
• Changes since 2005 do suggest that recession affecting many states. Could also be
governing parties needing to rein in expenditure and aid is an easy target. Japan
was in recession throughout the period.
• Explanations can focus on the national policies towards development such as in
Scandinavia and the Netherlands, colonial links (UK, France, Portugal), economic
wealth. All are MEDCs.
7. What are the reasons to explain why many countries are still unable to give 0.7%
of GNI to ODA?
8. In what ways may debt relief both hinder and assist development?
9.
Is the solution to the development gap a purely political process? Why is aid not
succeeding to alleviate poverty and reduce the development gap?
13
Conflict
The Hutu militias, on one side, and the Tutsi
rebel group, the on the other side. The war,
fought between the Hutu regime, and rebel
Tutsi exiles with support from Uganda,
culminated in 1994 with the mass killing of
hundreds of thousands of Tutsis by Hutu
militia.
A movement advocating for either further
political autonomy or, chiefly, full
independence. Is responsible for numerous
assassinations and terrorist acts in Spain.
(1980s–present)
Composed of diverse mix of militias and
foreign fighters, using violent measures
against the United States-led Coalition and
the post-2003 government.
In 1979, this event changed the country from
a constitutional monarchy, to an Islamic
republic. Said to have "made Islamic
fundamentalism a political force’.
The occupation by Iraqi troops was met with
immediate economic sanctions against Iraq by
some members of the UN Security Council
and subsequent expulsion of Iraqi troops in
January 1991 by coalition forces.
Generals led by army chief Pervez Musharraf
ousted the elected government and arrested
the Prime Minister Nawaz Sharif and other
members of his cabinet. Musharraf later
assumed the control of the government.
On September 11th 2001, al-Qaeda launched
at attack on the World Trade Centre by
hijacking two airplanes taking over the
controls and flying them into the building.
40,000 Bosnian Muslims in Srebrenica were
targeted for extinction. They were
deliberately and methodically killed on the
basis of their identity.
Parts of this region are now claimed by three
countries: India, Pakistan, and China.
Occasional small-scale acts of aggression to
assert sovereignty occur in this much-guarded
zone.
This tactic was used by the Viet Cong, who
were supplied via a jungle trail (the Ho Chi
Minh trail). They were eventually victorious
against the country’s government, which was
supported by the United States.
The protests of students in 1989 resulted in
the massacre of protesters in the streets to the
west of Tiananmen Square. According to
initial reports from the local Red Cross, there
were 2,600 casualties.
Location
Rwanda
Type of conflict
Civil war
Basque separatist
region
Partition / separatism
Iraq
Insurgency
Iran
Revolution
Kuwait
Invasion
Pakistan
Coup d’état
USA
Terrorism
Former Yugoslavia
Ethnic cleansing
Kashmir
Border dispute
Vietnam
Guerrilla campaign
China
Civil disobedience
14
An example of a conflict over the use of a local resource
The proposed Manor Farm Development, Doncaster.
The proposal:
An application to build a mixed use development of housing, employment uses, ancillary
amenities and public open spaces including associated landscaping and means of access
on approximately 70 ha of land.
Location: Manor Farm, Bessacarr, Doncaster, South Yorkshire.
Applicant: Moorfield Homes and Persimmon Homes (South Yorkshire) Ltd.
Background:
The area is shown on the OS map below. It is currently (October 2008) an area of open
land which is not farmed. There are a number of small areas of woodland within the area.
It is used regularly by dog walkers and ramblers. It lies 5km to the south east of
Doncaster within the parish of Cantley, but is more commonly referred to as being within
Bessacarr. It lies on the fringe of the urban area, the nearest radial road into Doncaster
being the A638, Bawtry Road. Bessacarr is a suburban area consisting almost exclusively
of owner-occupied properties.
Manor Farm is delineated by a range of transport systems:



Rail to the west – the east coast main line between Newcastle and London
Rail to the north – the branch line from Doncaster to Lincoln
Motorway to the east and south – the M18
The area has strong historical connections. The line taken by the A638 (Bawtry Road)
follows the route of the Roman road Ermine Street (from Lincoln to York). Some of the
areas of woodland in the site are declared as being ‘ancient’ which affords them a degree
of protection. The developers have stated that most of these areas will be maintained.
More recently Robin Hood airport has been established 5 km to the east. There are hopes
that this will stimulate economic development in the area, and increase the demand for
new housing.
15
16
People behind Manor Farm, say developers
DEVELOPERS behind a scheme to develop a new "village" at Manor Farm say that
the majority of people consulted are in favour of the scheme. The results of their threeday consultation have now been passed on to Doncaster Council.
However, a heated public meeting organised by the Bessacarr and Cantley Forum
attended by 100 people two weeks ago heard widespread concerns about the plans for
the area between Bessacarr and Rossington.
Moorfield Homes and Persimmon Homes say that six out of ten people consulted
supported their proposals and three-quarters of respondents agreed that if the site were
to be developed that the proposed vision was appropriate. They say that respondents
were particularly supportive of the proposed range of community facilities on offer, in
particular the allocation of land to provide a village centre incorporating local shops,
medical facilities, a primary school and extensive areas of open green space.
Geoff Hoffman of Moorfield Homes, said: "We have carefully considered the detailed
comments made during the consultation exercise and where possible will reflect these
views in the planning application as we take it forward." He promised continued
liaison with interested parties during the planning process.
Cantley and Bessacarr's local councillors have already indicated opposition to the
scheme. Paul Coddington, for the Liberal Democrat trio, said his party would ask the
council to call in central Government to look at the plans and also said that an
application for "Town Green" status for the area was also being considered.
The Manor Farm scheme will provide around 1,150 homes and a 250-home retirement
village with 30% of the homes classed as "affordable". The developers say that over
half of the site will remain as open green space, including woodland areas and nature
parks with educational facilities, which the wider public will be able to enjoy.
Source: Doncaster Free Press April 2008
17
The Bessacarr and Cantley Community Forum Manor Farm Action
Group
The group objects to the proposal on many counts. The details are set out below:
1. The site is a greenfield area and the proposal is not necessary. Even though the site
is allocated for development in the Council’s Unitary Development Plan, in line with
government policy on brownfield land development, new housing in the borough
should first be concentrated on redundant sites, and only when these are proved to be
unsuitable should any Greenfield land be used.
2. The site is remote from a reasonable range of jobs facilities and services. The
facilities proposed on the development site would be insufficient to provide for the
resident population, and a result the development could only be a car-based dormitory
settlement. Bessacarr and Cantley is already a community of over 8000 homes and
wholly inadequate community facilities.
3. Primary school provision would never be made on the site, although a site would be
reserved for a school. As other local schools are well below capacity, their places
would be filled up with children from the site. Opening a new school would require
the closure of an existing local school. All local schools are some distance away, and
even the closest is at least three quarters of a mile away. It is inconceivable that
children would walk there across a railway line and a busy main road. Parents will
therefore use the car to take children to and from school with inevitable congestion
and carbon emissions.
4. The Forum notes that the site is mostly in Flood Risk Zone 1 (Environment
Agency). There are currently inadequate arrangements for the disposal of surface
water. Hence we have major concerns regarding localised flooding.
5. Access to the site is wholly unacceptable. There is only one road proposed into the
site with a junction on to Bawtry Road. The road is grid-locked at both morning and
evening rush hours when it can take 45 minutes to drive into the town centre. Even
with the new Park and Ride and the Quality Bus Corridor, the road and public
transport local system has not been designed and could not be adapted to serve or cope
with the extra 1100 houses.
6. Emergency vehicles could be unable to access the site effectively, as it is to all
intents and purposes a land-locked cul-de-sac. A single access point could be
inaccessible in a major emergency. A major above ground gas installation is located in
the north east corner of the site, and a high pressure pipeline crosses the site heading
south west. The forum contends that these hazardous installations should preclude
development.
Source: Bessacarr and Cantley Times October 2008
18
Persimmon sees profits dive 64pc in the first half
HOUSEBUILDER Persimmon reported a 64 per cent fall in first half pre-tax profits as
the squeeze on mortgage finance led to its toughest trading conditions in recent
history. The York-based group said sales of new homes in the first half were down
almost a third on last year at 5,501, and it is now only building new homes where it
has firm interest in them.
Earlier this year the housebulder announced it was cutting its workforce by 40 per
cent, laying off 1,100 office-based staff and another 900 site workers. Persimmon said
the restructuring would cost £15m, but save £45m annually. "What we have done is
we have tried to maintain our market presence," said finance director Mike Killoran.
"We have still got a national network to deliver new homes nationally. We will be in
an A1 position to move forward when it does recover."
Mr Killoran said the lack of mortgage finance is driving the housing market crisis.
This means despite high demand, people are struggling to get mortgages to buy new
homes. Mr Killoran said it was "too early to say" if the worst of the crisis was behind
it. However, he added: "I would like to think that mortgage approvals are near the
bottom".
Source: Yorkshire Post August 2008
19
Attitudes to asylum seekers in the UK, and elsewhere
Who to
admit?
None
Some refugees
Close
family
Key
workers
All
Why?
The 2001 census shows that while the UK is becoming more multicultural,
second and even third generation immigrants are still among the most
deprived in society. The figures show that Black, Asian and other ethnic
minorities are twice as likely to be unemployed, half as likely to own their
own home and run double the risk of poor health, compared with white
Britons. The census data undermine the belief that first generation
immigrants may suffer, but their subsequent British born offspring move
off the breadline and become better off.
In 2003 an all party group of MPs claimed that the huge numbers of asylum
seekers entering Britain were threatening the country and likely to spark
social unrest. They said that the situation had already provoked a political
backlash, with voters turning to extremist parties in protest against the
spiralling numbers who have come to Britain during the last 20 years. If the
current rate of entry persists, the country’s capacity to cope, in terms of
providing housing, work and social services, would be overwhelmed.
Better to close the doors now than run the risk of social unrest.
It is clear that not all asylum seekers are genuine refugees (people whose
reasons for moving are to do with a real fear of persecution or death). The
fact that so many asylum seekers entering the EU make for the UK raises
the suspicion that many of those claiming to be refugees are in fact
opportunists looking for work and a better life. Equally the fact that most
come from Iraq, Zimbabwe, Somalia, Afghanistan and China suggests that
persecution may be the key push factor. The challenges are to discriminate
between refugee and opportunist; to process asylum applications as quickly
as possible; to treat all applicants humanely while this is being done; to
ensure that those denied leave to stay are removed and do not disappear,
swelling the number of illegal immigrants.
There are powerful humanitarian arguments for admitting close relatives of
people already living legally in the UK. The problem is how far to extend
the family net. Should it be limited to next of kin – parents and children –
or extended to aunts, uncles and cousins? Then there is the issue of
marriage. Should a line be drawn between ‘arranged’ and ‘chance’
marriages, and between foreigners entering the country as a national’s
partner, rather than as a legal spouse?
The UK government recently set up the Highly Skilled Immigrant
Programme to meet shortfalls in the skills market. So far it has attracted
3000 well-qualified foreigners and their dependents. The scheme makes it
easier for the brightest foreign students to carry on working in the UK after
their courses finish. Work permits are given readily to international
business executives. The government has stated that it wants to admit
150000 key workers a year as part of the programme. This selective door
process is a reversal of the closed door policy that has prevailed since 1970.
Many people believe that freedom of movement is a basic human right – it
was enshrined in the UN Declaration of Human Rights (1948). The view of
civil liberties organisations around the world is that this right is paramount.
It should be upheld, even to the point of disregarding any political,
economic, social or practical problems. However there are few
governments today actively supporting the right, other than when a
government is keen to rid its country of a particular group of people or
when governments are concerned about the safety of minority groups in
another country.
Where to
locate?
Send back
Concentrate
or disperse
Where
appropriate
Where
needed
Where they
choose
20
Conflict plan – Teasing out the geography from the politics - a tool for generating attitudes?
Conflict
DARFUR
Social issues
Economic issues
Environmental issues
AFGHANISTAN
GAZA STRIP
EXTRA 1
With reference to one recent major international conflict, assess and analyse the geographical impacts of the conflict on the area(s)
involved.
21
Structured questions.
World cities
(a) Study Figure D. Describe and comment on the contrasts in the quality of living that can
be seen in the urban area shown in the photograph.
(7)
(b) With reference to examples, suggest reasons for urban decline.
(8)
(c) With reference to one process of urban regeneration that you have studied, discuss the
effectiveness of that process in the area(s) affected.
(10)
22
World cities
Study the map below.
(a) Describe and comment on the pattern of urbanisation as shown.
(7)
(b) Explain the causes of counter-urbanisation.
(8)
(c) Assess the effects of re-urbanisation on cities within countries at different levels of
economic development.
(10)
23
5. Development and globalisation
Figure: The world’s top 10 companies (2007):
Rank
Company
Country
Market value
(US $ billion)
1
Exxon Mobil
USA
479
2
General Electric
USA
396
3
Microsoft
USA
287
4
Toyota Motor
Japan
280
5
Royal Dutch Shell
UK
269
6
Citigroup
USA
254
7
AT&T
USA
252
8
Gazprom
Russia
251
9
BP
UK
232
10
Bank of America
USA
219
Sector
Oil and gas
General industrials
Computer software
Automobiles
Oil and gas
Banking
Telecommunications
Oil and gas
Oil and gas
Banking
(a) Describe and comment on the information given above.
(7)
(b) Suggest reasons for the growth of transnational corporations (TNCs).
(8)
(c) With reference to examples, discuss the social, economic and environmental impacts of
TNCs on their host countries.
(10)
6. Contemporary conflicts and challenges.
UK: resident population by ethnic group (2001)
Region/
country
White
(%)
Indian
(%)
Pakistani
(%)
Caribbean
(%)
African
(%)
Chinese
(%)
Other
(%)
1.3
0.6
1.7
2.9
Bangladeshi
(%)
0.5
0.2
0.4
0.2
UK
NE
NW
Yorks
and
Humber
E.Mids
W.Mids
East
London
SE
SW
England
Wales
Scotland
N.Ireland
92.1
97.6
94.4
93.4
1.8
0.4
1.1
1.0
1.0
0.04
0.3
0.4
0.8
0.1
0.2
0.2
0.4
0.2
0.4
0.2
2.1
0.9
1.5
1.7
93.5
88.7
95.1
71.2
95.1
97.7
90.9
97.9
98.0
99.2
2.9
3.4
1.0
6.0
1.1
0.3
2.1
0.3
0.3
0.10
0.7
2.9
0.7
2.0
0.7
0.1
1.4
0.3
0.6
0.04
0.2
0.6
0.3
2.2
0.2
0.1
0.6
0.2
0.04
0.01
0.6
1.6
0.5
4.8
0.3
0.2
1.1
0.1
0.04
0.02
0.2
0.2
0.3
5.3
0.3
0.1
1.0
0.1
0.1
0.03
0.3
0.3
0.4
1.1
0.4
0.3
0.5
0.2
0.3
0.2
1.6
2.3
1,7
7.4
1.9
1.2
2.4
0.9
0.6
0.4
Source: 2001 census
(a) Describe and comment on the distribution of different ethnic groups in the UK as shown.
(7)
(b) Suggest reasons for the development of multicultural societies.
(8)
(c) With reference to examples, discuss the issues related to multicultural societies. (10)
24
Essay questions.
Answer ONE question from this section.
You must not answer the question number answered in either Section A or Section B.
Total for this question = 40 marks.
4. Assess the impact of out-of-town centre retailing areas on the regions in which they
occur.
5. “Global social and economic groupings have significant beneficial effects for their
members.” Discuss the extent to which you agree with this statement.
6. With reference to one recent major international conflict, analyse and assess the
geographical impacts of the conflict on the area(s) involved.
25
Specimen structured question.
(a) Study Figure X below. Comment on the extent to which poverty levels are falling
in the world.
7 marks
(b) Outline causes of poverty in the world.
8 marks
(c) Discuss the role of international agencies (such as the United Nations) in
addressing poverty on a global scale.
10 marks
26
(a) Mark scheme.
Level 1: simple statements of ups and downs of poverty levels. Limited quantitative or
qualitative statements. Commentary is either non-existent or basic.
1-4
Level 2: Good commentary on the data provided, which is comparative and maybe
perceptive. Some evidence of critical understanding of the data provided. 5-7
(b) Mark scheme.
Level 1: simple and generalised statements of causes of poverty (ie of process), with no
depth or detail. Specific locations are not given.
1-4
Level 2: specific causes of specific aspects/areas of poverty access this level, with good
use being made of case studies and/or good development of one or more factors.
5-8
(c) Mark scheme.
Level 1: simple statements of an agency’s role. No depth to answer, mostly
generalisations. Limited use of exemplification and/or sense of place.
1-4
Level 2: some detail and depth for one type of response from an agency/ies. Good
development of the impact of that response in one area of the world, with perhaps some
evaluation of impact.
5-8
Level 3: fully developed answer, with good elaboration of more than one agency.
Rounded answer with full range of responses discussed and/or evaluated.
9-10
Specimen essay question.
Critically evaluate the causes of global poverty and the attempts that have been
made to address it.
40 marks
27
1. Inner city decline has taken place in many urban areas within the United
Kingdom. With reference to one or more inner city areas that you have studied,
explain why inner city decline has taken place.
7
marks
Decline has taken place in the inner city of Nottingham. This began with the closure of
factories such as “Raleigh” and “Players”. This then led to an increase in
unemployment with people with little or no disposable income. This meant that crime
rates began to increase as people robbed things that they could not afford. As the
Nottingham Trent University is nearby many students live in the area in flats. They often
don’t get on well with the elderly population who can’t afford to or are able to move out.
They do not support local services such as schools which lead to an increase in underperforming schools and many in Nottingham are in Special Measures. The street
furniture and quality of housing is poor with a lot of rubbish about the streets because of
the students.
2. There has been a number of ways in which urban regeneration can take place.
These include:

Property-led regeneration

Gentrification

Partnerships
Choose one of these, and, with reference to one case study of a scheme that you have
studied, describe its aims, and comment on its effectiveness.
10 marks
UDCs are property-led regeneration which are run by an executive board and are given
money by central government in the best way for the local area although their aim is
always to improve the area in such as way as businesses will see it as a good business
opportunity. They are market led and property led because they make physical changes,
eg improve infrastructure to attract businesses (property led) and it is market forces not
planners, that decide the ultimate layout of the area – they want businesses to lead the
way (market led).
28
An example of an urban development corporation (UDC) is the London Docklands UDC
(includes such as Wapping, Tower Hamlets and Lime House). They aimed to improve the
area in such a way so as to attract any business (didn’t care what type) and they did this
by improving the infrastructure (eg with the river bus and 90km of new roads) and the
environmental image of the area. In a way the UDC was very affected. It had a leverage
ratio (in billions 1 to 8.5) and it created a second CBD on the Isle of Dogs (100% of
which is let) which many newspapers, eg the Telegraph, located on. The area looked a lot
better with new waterfront walks and parks and an ecology site at East India Dock basin.
However, the social aspect of regeneration wasn’t looked at and the lives of local people
weren’t improved eg the new river bus and Jubilee line were too expensive, and the jobs
created were either relocated from elsewhere or management jobs, unsuited to
unemployed manual labourers (only 17000 were totally new).
Discuss some of the issues associated with multicultural societies.
(10 marks)
Multicultural societies have thrown up many issues in their development. Religious
tension is a very extreme issue and connected with this is the occurrence of racism in
these areas. In 2001 the Yorkshire town of Bradford was the centre of a race riot carries
out by the Indian and Pakistani community over the activities of right wing political
parties such as the BNP in the area. Religious intolerance has become prominent in the
years since 2001 due to the activities of so-called Muslim terrorists which have led to an
escalation of suspicion and hatred of the Muslim faith. This has been found in areas such
as Finsbury Park in London.
As many ethnic groups stay close together, then language difficulties have been apparent
with the outside world. Many immigrants in society may not feel the need to integrate
with people outside of their ethnic grouping. This encourages segregation and also fear as
many people do not know what the other communities do or know their customs.
29
Structured question on separatism.
With reference to examples, suggest reasons why separatist pressures exist.
8 marks
Mark scheme.
Level I – simple statements of reasons; or a detailed development of one reason only.
0-3
Level II – a developed account of more than one reason.
4-8
Student answer.
Around the world some countries are wanting to separate from each other. This is true in
Scotland where many Scottish people want to separate. This is because they feel
peripheral from the capital of the UK (London) and don’t feel there needs are being
catered for. Also many Scottish believe that their native language of Gaelic can only be
preserved if Scotland become independent.
One of the major reasons for Scottish independence was during the 1970’s North Sea oil
was found and used. Many Scottish did not feel that they got what they should of out of
that resource hence the SNP (Scottish National Party) began the “It’s Scotland’s oil”
campaign.
Another example of separatism is Chechnya where a group of people known as the
Chechen rebels want to be independent from Russia. This is due to many reasons – one
being historical as in WWII Stalin accused Chechnya of collaborating with the Germans
and many sent off to Siberia as a punishment. It is thought that 800000 people were sent
and unable to return till the mid 1950s. Religion can also be a reason for separatism in
this case. Chechnya is a majority Muslim country however Russia is a Russian Orthodox
state. The rebels are also infuriated that when the Russian state collapsed neighbouring
countries such as Georgia were granted independence whereas Chechnya were not.
30
Examples of Unit 3 essays.
Mark scheme for the essay questions
Level
1
Marks /40
1-10


2
11-20






3
21-30







4
31-40







Assessment criteria
The answer shows a basic grasp of concepts and ideas, but
points lack development or depth.
Explanations are incomplete and arguments partial and
lack coherent organisation or reasoned conclusions.
Examples are superficial.
There is no evidence of synopticity
The answer is relevant and accurate, and shows reasonable
knowledge and critical understanding of concepts and
principles with some use of specialist vocabulary.
Arguments are not fully developed and the organisation of
ideas and the use of examples and general theories show
imbalances.
Some ability to identify, interpret and synthesise some of the
material.
Limited ability to understand the roles of values, attitudes
and decision-making processes.
Sketch maps/diagrams are not used effectively.
Evidence of synopticity is limited.
Sound and frequent evidence of thorough, detailed and
accurate knowledge and critical understanding of concepts
and principles, and of specialist vocabulary.
Explanations, arguments and assessments or evaluations
are direct, logical, purposeful and generally balanced.
Some ability to identify, interpret and synthesise a range of
material.
Some ability to understand the roles of values, attitudes and
decision-making processes.
Examples are developed and sketch maps/diagrams are
used effectively.
There is strong evidence of synopticity
Strong evidence of thorough, detailed and accurate
knowledge and critical understanding of concepts and
principles and of specialist vocabulary.
Explanations, arguments and assessments or evaluations
are direct, logical, perceptive, purposeful, and show both
balance and flair.
There is a high level of insight, and an ability to identify,
interpret and synthesise a wide range of material with
creativity.
Evidence of maturity in understanding the role of values,
attitudes and decision-making processes.
Examples are well-developed and sketch maps/diagrams
are fully integrated.
The answer is fully synoptic.
In deciding the overall level a best fit of the above will be put into practice.
31
World cities essay.
Assess the causes of variations in the rate of urban growth in the modern world.
There are many reasons why cities have grown and these reasons have changed over time
and from place to place. The most important reason for the existence of cities is the many
functions that they perform. In some places these have changed which helps to explain
why cities have grown at different rates in different places. London grew most rapidly
during the Industrial Revolution when it was a port and home to many industries like
furniture making and sugar refining. The East End was the centre of this industrial zone
and a large number of people came to the city in order to work in these industries. At the
same time people were leaving the countryside because of the many push factors like
poverty and poor facilities. London grew very rapidly in the Victorian period. It was a
centre of government and as people started to earn money it also developed an important
retail centre around Oxford Street and Regent Street. It was the capital city and this
attracted civil servants and politicians. As a result of these functions London grew very
rapidly becoming the largest city in the world by the end of the 19th century. Being the
centre of the Empire obviously helped this growth.
Since then there have been changes in the rate of urbanisation. In the case of London it
has fallen in recent times. This has been because many people have moved out of the city.
The main reason has been counter-urbanisation with the richer members of society
deciding to move to rural areas and commute into the city instead. They have left the
inner city areas in particular such as Kentish Town and Camden, moving out to counties
such as Oxfordshire. This has had a big effect on both the areas they have left and the
areas to which they have moved. Many of them have found it difficult to be accepted in
the rural areas.
Another reason for the falling population is that some of the industries which used to be
in the East End of London have disappeared. Some have moved out to the rural areas: the
furniture industry has moved out to High Wycombe; sugar refining which used to be at
Tate and Lyle’s factory on the river Thames is now situated in the sugar beet fields of
places like Norfolk. Because these jobs have gone so have the people who now live in
other parts of the country. New jobs have developed in different places and some of these
32
have had quite rapid growth. Reading is an example of this, with jobs in hi-tech industries
like computers offering employment that has of course attracted many people to the area.
There are some places in England that have grown quite rapidly, mostly in the south.
Other cities in the north, like Sheffield, have lost their heavy steel industry completely. In
the case of Sheffield, the iron and steel industry has gone to places like Taiwan and
Korea, where the costs of labour are much cheaper. This has led to the growth of cities in
these places.
In less developed countries there has been very little industry and the cities have grown
because of push factors rather than pull factors. These push factors are mostly to do with
changes in farming which have led to lots of peasants having to leave the land if they
cannot get jobs in the new commercial farms that have grown in places like Egypt. Cairo
has grown very fast because of rural urban migration and the government has tried to stop
it happening by developing rural areas with large projects. This type of urbanisation is a
major problem in many developing countries where squatter settlements are very
common. These favelas are usually without any form of sanitation and often have no
proper sewage disposal. As a result many people suffer from easily avoidable diseases
like malaria and there is much malnutrition. Jobs are rare with many having to work
informally by selling things in the street or working at home for very low wages. Most
governments do not have enough money to help much by putting in better services and
there is often a lot of corruption. Some western governments do not think that there is
much point in trying to help these poor countries which are often in Africa and believe it
is better to solve the urban problems of the richer countries first.
Urbanisation is still a very important trend in the world though it has slowed down. It
varies from place to place because some countries like Britain have urbanised almost
completely while others like Egypt are just starting to develop and will go on urbanising
for quite a long time to come. In the past the most important single reason for
urbanisation was industrialisation, but that is not true today. In Africa, many cities like
Cairo are growing very fast thought here is very little industry. Here, the reasons are
more to do with what is going on in rural areas where there is increasing poverty and loss
of land. Meanwhile in the developed nations cities are stagnating as industries move out
to new settlements. Only a few like Los Angeles are growing.
33
Development and globalisation essay.
Discuss the roles and relative importance of transnational corporations (TNCs) and
newly industrialising countries (NICs) in the changing global economy.
It can be seen that TNCs have grown globally because of the competitive nature of
international economies and the ease at which products can be produced, traded and
transported worldwide. Often TNCs such as Nike, Dyson and Daewoo have the
mainframe of their corporations in MEDCs, for example Nike’s headquarters are based in
Oregon, USA. They are located in such areas for the skilled educated workforce and
commerce opportunities. However, the products they produce are often out-sourced to
NICs. This is because NICs offer what MEDCs can no longer afford to do: cheap
materials, tax incentives to locate there and most importantly a large cheap workforce.
This creates huge profit margins for the company but can often cause both social and
economic problems. For example, when Dyson shifted production of its hoovers from
England to Malaysia, over 500 people lost their jobs causing mass unemployment. It also
affected local suppliers who lost trade because they had set up to supply the company.
Dyson could no longer afford the high rates of tax England charged, nor could it continue
paying high wages. In order to stay in competition it had to move production abroad.
However, the relocation of a TNC can also cause social problems for the NICs. As a TNC
relocates it needs a new large workforce that is often unavailable at a local level and
subsequently creates economic migration. For example when HSBC moved its call centre
from Derby to India, thousands of people were required, and many left the rural
agricultural townships to come and work in the urbanised areas for them. This caused a
shortage of people in the rural areas to work on the farms. A similar scenario occurred
when Nike set up a new factory in Vietnam, people moved from the rural areas to work
for the TNC only to find a severe shortage of housing and services such as doctors and
schools. Often the economies of areas in MEDCs greatly suffer when TNCs shift
operations to NICs. For example when the Chinese Automotive Group closed Rover
production in Longbridge, the area suffered huge rates on unemployment and went into a
mini-recession.
It can be seen that due to TNCs many NICs are becoming powerful components in the
global economy. For example the “Tiger” economies of Asia such as China and Korea
34
are growing incredibly fast and are able such to out-compete many established MEDCs
such as the USA because of the speed and cheapness of what they are able to produce.
For example, China’s sudden growth surge has required huge amounts of metal, by
buying in bulk they have cornered the market and many companies, especially those in
Europe have suffered shortages and have been unable to compete. The success of these
NICs has lead to an imminent rise in inflation rates which will see established MEDCs
such as in the UK suffer higher costs of borrowing, higher taxes and lower house prices.
As a result of the growing dominance of NICs such as South Korea, MEDCs such as
Japan are increasingly struggling to compete on the global market. MEDC are
subsequently losing many of its manufacturing industries to cheaper NICs eg the British
motor manufacturing industry is now non-existent except on a bespoke scale because it is
no longer financially viable to conduct such businesses. Many NICs often have the raw
resources such as coal that are needed for industry that the MEDCs have long since either
run out of or have outpriced the limited resources they have.
In conclusion it can be seen that TNCs and their reliance on NICs has had a major impact
on the global economy. With the ever increasing growth that NICs such as Taiwan and
the Philippines and China are undertaking, there is an increased likelihood they will soon
develop into viable superpowers on a scale on a par with the USA. The commercial
viability of NICs is destined to translate into a decline in the manufacturing capabilities
of MEDCs such as the UK and Germany. MEDCs will have to resort to other industries
and services in order to maintain economic stability and a place in global economic
marketplaces. The increase in freer trade has also helped NICs to attract TNCs and
subsequently boost economic activity. MEDCs can no longer rely on its traditional
industries in order to survive with the growth of NICs, MEDCs need to become more
innovative in order to prevent a global recession. TNCs should also be more considerate
in their host countries before shifting operations abroad, for example Heinz has had to
reconsider keeping its HP Sauce Aston factory open after it caused civil outrage when
announcing it was transferring production to Holland, prompting the local city council to
intervene. It is therefore fair to comment that TNCs and NICS now have a major
influence on local, national and international economies.
35
Write an account of the growth and impacts of transnational corporations (TNCs)
and their relationship with global products and global marketing.
Answer 1.
TNCs grow as companies try and make the most money as possible. Nike for example
started making shoes in the 1960s in the US and realised that costs could be cut if
manufacture was shifted to a newly industrialising country. In the 1960s these were
places such as Taiwan and Hong Kong (Tiger economies). The advantage to Nike of
becoming a TNC was that labour and land was cheaper in the NICs than in MEDCs and
regulations about pollution and working hours were scarce. Furthermore governments
attracted TNCs like Nike by offering tax breaks and subsidies. Other reasons for the
growth of TNCs is to get the product closer to the market. Nissan for example set up its
first European car plant in Washington near Sunderland. The advantage of this to Nissan
is that it reduces transport costs of shipping cars from Japan to Europe and more
importantly as the cars are made in Europe the EU does not charge Nissan for importing
the product again cutting costs and increasing profits for the TNC. TNCs grow with time
so may set up manufacture in one country, have research and development in another and
have regional headquarters in other countries. Washington near Sunderland for example
is the European headquarters of Nissan.
Often TNCs set up in a country to be near the appropriate market. Their product must suit
the market. For example, the Nissan Washington plant builds 250000 Primeras and
Micras a year to be sold on the European market. This is because there is demand for that
kind of product in Europe. Whereas in Mexico Nissan set up a factory building pick up
trucks which are more suitable for the Mexican market as it is less economically
developed so has poorer roads so pick up trucks are more in demand. It is also in close
proximity to the USA and Canada where pick up trucks are popular. In this way Nissan
are reducing transport costs in getting their product to the desired global market so make
more money.
The impact of TNCs can have on the countries they operate in can be massive. Last year
for example the biggest TNC was Exxon-Mobil which turned over the most of any TNC
36
much more money than a lot of African nations. Clearly then they will have tremendous
power as market forces are in operation. The impact of TNCs can be positive and
negative. Jobs are often created in NICs in the manufacturing industry building sector and
service sector, for example in hotels and food providers for workers. Whilst this seems
positive often jobs are lost in MEDCs as a result. For example when Dyson closed its
Wiltshire factory to move it to Malaysia over 800 jobs were lost in England. Further
problems are that skilled jobs are often not given to the people of the host country, in
Washington Nissan brought in over 70% of the managers from Japan. The impact of this
is that the host country will not have its population trained in skilled work.
A positive impact of TNCs operating in other countries is that the building of a site often
brings with it improved infrastructure and sometimes health care. For example a Dutch
TNC set up a diamond mine in Namibia and gave free HIV tests and treatment for all its
workers. On the other hand the negative side of the setting up of the mine was that much
land was lost that had previously been home to native tribe. The tribe was relocated in
urban areas and elders say much of their culture and tradition has been lost as a result. A
similar problem is that when setting up in new countries TNCs often build on Greenfield
sites. Conservationists complain TNCs are destroying natural habitats worldwide
especially in LEDCs where rules about pollution and where sites can locate are less strict.
A further problem is that often the host country will not profit that much from having the
TNC there, taxes on profits will be paid to the country of origin of the TNC. Also a lot of
TNCs are footloose so can move whenever they want. The impact of this especially for
LEDCs is that countries can become dependent on a particular company who may
suddenly pull out thus ruining the economy of the host nation.
Answer 2.
Transnational corporations are among the most powerful business organisations in the
world with considerable influence in global consumer prices, living standards and
politics. The huge American chain Walmart has an annual income of $244 billion which
is more than the combined gross domestic product of the world’s 30 poorest countries.
37
On a slightly smaller scale, Nike, the major American sportswear brand has an annual
output of $11 billion, which is greater than the GDP of Jamaica ($10 billion).
Over the past 30 years the world has seen considerable growth in the number, size and
wealth of TNCs. This is due to a number of different factors. Most importantly is
communication. Fast air travel, internet broadband, undersea cable and mobile phones
means that it has become much easier for domestic companies to function abroad. The
relaxation of trade barriers for example within the EU where there are no significant trade
barriers between member states means that it is economically possible for companies to
import and export raw materials, products and employees, thanks to more lax labour
laws). The growth towards privatisation in many countries since for example the collapse
of the Soviet Union in Europe and the end of the British Empire means that foreign direct
investment has become much easier. Governments however can still play a key role in
encouraging foreign companies to set up branch plants in their countries for example in
Britain where the UK government offered grants to the Japanese car company Nissan
when they created their Sunderland plant. Many TNCs chose to relocate routine assembly
lines to LEDCs and Newly Industrialising Countries (NICs) to capitalise on cheaper
labour, cheaper land and less stringent health and safety and environmental planning
laws.
At the moment the majority of TNCs are American, European and Japanese and their
head offices in MEDCs but there is significant growth of TNCs in China and India and
the Tiger nations of South East Asia. Singapore for example since gaining its
independence in 1985 has developed into one of the largest electronics producing
countries in the global market playing host to TNCs such as SGS Thompson electrics.
The investment by foreign corporations has led to such growth that SGS Thompson
outsourced its routine assembly plants to Muan in Malaysia making Singapore itself the
site of more sophisticated assembly as well as some R&D. Singapore is now investing in
other countries through foreign direct investment and outsourcing its own branchplants.
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The logos and products of the major TNCs are recognisable everywhere, for example
McDonalds, Coca Cola, Cadbury Schweppes and global products can be found in all
countries even some of the poorest LEDCs such as Lesotho in Southern Africa. These are
very much globally functioning companies. Nestle which manufactures a large number of
food products employ 276.050 people worldwide in 100 different countries. The
popularity of global products has led to the creation of ‘fake trade’ which functions
particularly healthily in the Far East. In Hong Kong the market in fake brand electronics
is currently booming and though it can be seen as an unfair trade capitalising on the
TNCs business, it is at least providing employment for those not directly employed by the
global TNC.
TNCs impact heavily on the countries in which they operate. They can have considerable
benefits economically. In Taiwan for example the growth of TNCs has increased the
average GDO per capita from $140 to $4800 between 1980 and 1997. However this does
not translate directly into a higher standard of living: only 600000 of Taiwan’s 27 million
inhabitants are served by a proper sewage system. Equally, the environmental impact of
the TNCs is considerable: toxic fumes are pumped into the air and chemical affluent
pours out from factories though when compared to the pollution TNCs have brought to
Chinese cities such as Beijing, Taiwan’s pollution problem is viewed less harshly.
The wages from global companies can be superior to domestic ones and TNCs regularly
employ more women. When Singapore was still an LEDC receiving foreign imports,
female employment rates began to rival male employment, producing some jealousy in
male counterparts.
Another outcome of the creation of TNC branch plants is rural to urban migration. TNCs
tend to establish themselves in the urban areas and attract employment leading to
overcrowding and eventually even unemployment when these jobs start to run out. In the
rural communities there may be fewer people to work in food production leading to
malnutrition in rural areas and the urban areas which they supply. Age structure
imbalance can often occur as the young active population leave to find work, leaving the
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older generation and children. In South Africa this has led to the spread of AIDS. Men
leaving their families in peripheral areas to work for foreign owned mining companies
work on long term contracts and may frequent brothels in cities like Johannesburg and
Cape Town, infecting themselves with AIDS which they can then transmit to their own
communities on their return.
Some TNCs are also unscrupulous employers. Nestle have been chastised in the past for
this use of child slavery on West African cocoa plantations. One problem of TNCs is that
often the product supply chain is so long that the head office can lose track of the ethical
practices and wage structure further down its supply chain.
In conclusion, TNCs are a major part of the growing trend of globalisation, the increasing
importance of global perspectives and communication in the lives of both people and
companies.
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Conflicts and challenges question
For a conflict over the use of a local resource, analyse the causes of the conflict and
assess the extent to which it has been/can be resolved to the satisfaction of all those
concerned.
A conflict that is still raging in this local area is that of the future use of the Sandyforth
open cast mining site in Wigan. When the Cobex mining company went into liquidation
the area was abandoned, leaving a great hole in the ground. The council spent a small
fortune on making the area safe so that water would not infect nearby pipes or the road.
In 2002 they were approached by the Banks family who wished to use the site as a
landfill to dispose of waste. The first plans were rejected by the council but the Banks
family appealed to a higher body.
In this conflict there are three main participants: the Banks family who wish the land to
be sued for waste disposal as well as for commercial reasons. They hold that because
Wigan alone produces over a quarter of a million tons of waste a year that a landfill site is
needed to get rid of it all. Also they claim that gasses given off can be sued to generate
small amounts of energy. Secondly, there is a group known as PALs (People Against
Landfills) who argue that the site could and should be put to better use. They argue that a
landfill site so near to the A road would be seriously hazardous to motorists if rubbish is
blown off the landfill. Moreover some scientific research suggests that children born near
a landfill site often experience hindered growth or deformities. What is more, the PALs
group is made up local people who are concerned that house prices will fall dramatically
making it harder to move away if the plans go ahead. Finally there is the Wigan Council
who must take both sides into account and attempt to come to a decision.
In this conflict, the Banks company has attempted, at first, to use market processes to
achieve its goals. They sought to outbid all competitors and so seize the land to be used
no matter what the objections were. However, the Council put a stop to this and the
Banks company were forced to go through planning processes thus sending the conflict to
public enquiry. Now the Council must weigh up both sides of the argument and come to a
satisfactory resolvement.
If the conflict is resolved in favour of the Banks family the repercussions could be
harmful to the local community. Firstly, house prices will drop meaning that those who
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wish to escape the stench will have terrible difficulty in doing so. Yet the Banks family
will gain from increasing their business and using the site commercially thus making a
profit. This will of course be taxed and the money given back to the community. Yet, it is
argued, it will cost the Banks family a large sum of money to line the pit with an
impermeable covering to prevent polluting the nearby water systems and so the initial
profits will be quite low. Moreover there would be a great deal more traffic from lorries
etc etc and the local roads would have to be widened against costing the Council money.
If the PALs group gets its way, then another use for the land must be decided upon. The
group suggests that the hole be filled in and the area landscaped and tuned into a wildlife
area or a park. This would attract little tourism though, yet would put house prices up.
However, some argue that landscaping such a huge area would be very costly for the
Council and take a long period of time to achieve in full.
Wigan Council will have to decide what is best for the local area and community. The
Council currently has a waste disposal contract with another company which also deals
with recycling for the area. With new EU legislation on recycling the council will have to
maintain this contract rather than the Banks’ family’s suggestion which does not take
recycling into account. This would also cause further conflict as the Council must take
the whole contract from the other company and cannot pick single parts so it would not
be beneficial to the Council to go with the Banks’ family’s proposed use for the
Sandyforth site. Yet an alternative use for the site must be considered and must not be as
costly or hinder the local people or transport links as much.
For information:
This conflict is now over. The Banks’ application failed. The site has now been
completely filled in.
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Essay question on separatism
Discuss the nature, causes and consequences of separatist pressures.
Separatist pressures are tensions that occur when one or more regions of a particular
country no longer want to be part of that country and wish to form their own nation. They
may have a lack of autonomy which they campaign to obtain by both peaceful
(democratic) and violent means.
A key example of an area where separatist pressures occur is in the Basque region of
north east Spain and south west France. Here, four regions of Spain and three regions of
France wish to separate from their current countries and join together to form their own
country but so far they have been unable to do so. Despite being given greater autonomy
in 1936 by the Spanish republican government this decision was reversed after the civil
war of 1937 when General Franco came to power. Indeed the Basques were persecuted
and thousands were forced into exile or executed before Franco’s death in 1975. The
language was banned and the culture oppressed leading to the formation of a Basque
nationalist group ETA in 1959/ They declared war on Spain and attacked military and
government officials and buildings and are still in existence today. More democratic
motions have been the formation of the Basque Nationalist Party, and Herri Batasuna
political party although the association of the latter with ETA has led to imprisonment of
its members and it was banned for 3 years from 2002 due to its affiliation with terrorist
organisations. Today, the Basques enjoy some autonomy and control their own health,
education, police and transport, but this is not enough for some.
A key reason for separatist pressures is that a region which wishes to separate has a
history of independence or greater autonomy in the past, as was the case with the
Basques. A region wishing to separate usually also has a different language to the rest of
the country eg Euskara is the language of the Basques, as well as a different culture.
Often the region also has a different religion to the rest of the country, as is the case with
the Basques where the Basque church is a different form of Christianity to the
Catholicism practised in the rest of Spain and France. The region usually has a
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geographically remote location too (the territory of the Basques is hundreds of kilometres
from both the French capital Paris, and the Spanish capital Madrid). Finally separatist
pressures may occur in a region which feels its resources are being unfairly exploited by
central government – the Basques are responsible for a very large proportion of Spain’s
iron and steel production.
The increase in separatist pressures also has an important impact but these tend to be on a
small scale. For example, a key effect of the separation of the Basque territory from
Spain would be a damaging impact on the Spanish economy. The port of Bilbao among
other cities in this region is responsible for around 95% of Spain’s steel industry as well
as an important fraction of the Spanish shipbuilding industry. The loss of this region with
its resources and skilled workers would be devastating to the Spanish economy and
would cause irreversible damage to these key industries. As a result the Spanish are keen
to hold on to this region. In addition separatist pressures are important as they actually
lead to a loss of life. With military organisations such as ETA carrying out terrorist
actions such as bombings, people’s lives can be at risk even when they have nothing to
do with the separatism. Furthermore separatist pressures can lead to impacts in areas
which are unconcerned by such activities such as the shooting of two Spanish police
officers in the French town of Cap Breton which isn’t in the Basque region.
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